Question: Suppose the Japanese yen exchange rate is 78.47 = $1, and the British pound exchange rate is 1 = $1.57. (Enter your answer as directed,

Suppose the Japanese yen exchange rate is 78.47 = $1, and the British pound exchange rate is 1 = $1.57. (Enter your answer as directed, but do not round intermediate calculations.) Required: (a) What is the cross-rate in terms of yen per pound? (Do not include the yen sign (). Round your answer to 2 decimal places (e.g., 32.16).)

Cross-rate

(b) Suppose the cross-rate is 125 = 1. What is the arbitrage profit per dollar? (Round your answer to 4 decimal places (e.g., 32.1616).)

Arbitrage profit per dollar $

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